Belgium

Sera Conroy

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world: 40 overall: 68.8
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info

  • Population:
    • 11.2 million
    • GDP (PPP):
      • $422.8 billion
      • 0.2% growth
      • 0.3% 5-year compound annual growth
      • $37,881 per capita
    • Unemployment:
      • 8.6%
    • Inflation (CPI):
      • 1.2%
    • FDI Inflow:
      • $-2405.9 million

1. Legal System

Corruption in Belgium is rare but there is ongoing political problems between two linguistic communities. Bribery is illegal in the eyes of the government. There is laws protecting against property rights as well. The judicial system is repeated but the courts can be slow. Overall Belgium has a good legal system.

2. Competitve Markets

The modern, private enterprice economy of Belgium has capitalised on its central geographic location, developed transport neetwork, and diversified industrial and commercial base. Belgium developed an excellent transportation of ports, canals, railways, and highways to integrate its industry with its neighbors. Industry is concentrated mainly in the busy places in the north, around Brussels and in the two biggest Walloon cities, liege and Charleroil, along the sillon industriel. Belgium imports raw materials and semi-finished goods that are further processed and re-exported. Except for its coal, which is no longer economical to exploit, Belgium has few natural resources other than fertile soils. Nonetheless, most traditional industrial sectors are represented in the economy, including steel, textiles, refining, chemicals, food processing, pharmaceuticals, automobiles, electronics, and machinery fabrication. Despite the heavy industrial component, services account for 74.9% of GDP, while agriculture accounts for only 1% of GDP.

Belgium depends heavily on world trade. Belgium's trade advantages come from its central geographic location and a highly skilled, multilingual, and productive work force.

3. Limits on Government Regulations

Belgium’s individual income tax rate is 50% and its corporate income tax rate is 33%. They also have a value added tax and estate tax. The overall tax is 43.5% of the gross domestic product. The government is allowed to spend 54.7% of the domestic economy. In conclusion the public debt rate is approaching 100% in the GDP.

4. An Efficient Capital Market

Belgium controls the prices of fuels and other items. They are spending about 1% of GDP on coal subsidies.To employe someone it has gotten easier but hiring someone is still expensive. The cost of building a company has been lowered, and starting a business takes only three days and four steps.

5. Monetary Stability

The Belgium financial system is large with a solid capital on aggregate, and the 2008 global financial crisis has had a major impact on the Belgium financial sector. The links between banks and the Belgium sovereign have increased owing to the crisis, with total exposure of the banking sector to the federal government at 10% of banking assets in 2012.

6. Low Tax Rates

Belgium is dependent on world trade, with over two-thirds of GNP coming from exports. The country's exporting potential is supported by it's excellent transport infrastructure, central geographical location, and multilingual work force - over half of Belgium's exports are sent to neighboring European countries.

7. Free Trade

EU members have a 1% average tariff rate. The EU is relatively open to trade. Foreign and domestic investors are mostly treated equal in Belgium. The financial sector remains mostly free from government involvement. Some received bailouts during the recently passed Financial Crisis Law grants the state stronger powers during crises.
Belgium - largest underreported crisis in Europe

Video Summary ^

This video is about the economic slow down and crisis and how they are trying to solve it.